Wow.  That is really a bummer. 

Hope that once they are back on their feet they reward the loyalty of any of the employees who are willing to go out on a limb like that. 

My day job, put everyone except management on mandatory four day work weeks last January.
Management took a 15-20% pay cut as well.

It's not working for 'free' but it sure feels like it.
On the flip side, we still have jobs and will pay less in income taxes this year

Not all bad news, as you now have more time to work on your portfolio, do some assignment work, post in the forum, dream about turning a hobby into a full time job, or just pressing F5 waiting for the next sale to show on your statistics. 

Just this month I am out of contract, the first time in seven years with nothing to follow, but being optimistic I think it will turn by the end of this year or early next year.

One thing I notice is that many companies employed to many staff in the good times, have not lost that much revenue, but are using the recession as an excuse, to squeeze more from employees and drop a few less productive ones.

David